Yarra Park, next to the MCG, will host Early Eve, a family event from 5.30pm with performers including James Reyne, face painting, karaoke and an art installation, ending in a fireworks show at 9.30pm.

Trains, trams and NightRider buses will run all night in the metropolitan area. Public transport is free from 6pm tonight until the first scheduled services on New Year's Day.

But the City Loop, including the stations Parliament and Melbourne Central, will close at 11.45pm tonight.

Public Transport Victoria encouraged revellers to plan ahead and leave extra time for their journey.

Police said they will issue on-the-spot fines for drunk, disorderly or antisocial conduct and vowed to "saturate" the streets with personnel.

Water police will monitor Docklands Harbour and the Yarra and transit police will be present on trains, trams, buses and railway stations.

Assistant Commissioner Andrew Crisp said: "We want everyone to have an enjoyable time – we won't tolerate any antisocial behaviour that could ruin the night for anyone else.

"Remember that families will be out, enjoying the night together, so be mindful of your behaviour.

"If you're drunk and making a menace of yourself, police will intervene."

Police reminded the public that the CBD and most foreshore areas around the state are alcohol exclusion zones where open or closed containers of alcohol are banned.

The City of Melbourne reiterated that consumption of alcohol is banned in public places in the central business district.

The City has also declared major events alcohol free in streets and reserves in Carlton, in the area bounded by Victoria Parade and Swanston, Elgin and Nicholson streets.

Meanwhile fire services warned the public not to use illegal fireworks after a man suffered serious facial and head burns at Mooroopna on Christmas Day.

The incident also sparked a small grass fire.

Country Fire Authority chief officer Euan Ferguson said the incident showed the danger to life and property posed by illegal fireworks.

He said the risk of fire had grown across the state with high fuel-loads in forests and dry grasslands.

MFB acting chief officer Peter Rau said there was no need to use illegal fireworks with the number of legal displays on offer.

There were severe penalties, including jail, for people caught with illegal fireworks.

Channel Seven will broadcast the City of Melbourne New Year’s Eve fireworks from 11.30pm to 12.30am tonight, while Channel Nine will cover the Sydney fireworks spectacular, featuring Kylie Minogue, from 11.25pm to 12.15am.